If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU.

California is rapidly running out of money. Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves. Facing inadequate credit to make up the difference, California's Controller John Chiang warns that by the end of February, the nation's most populous state may not be able to pay some of its debts, and instead be reduced to issuing those creditors IOUs.

"My office has projected that, in approximately 60 days, there will be insufficient cash available to meet all expenditures reflected in the 2008-09 Budget Act," stated a Tuesday letter from Controller Chiang to the directors of all state agencies. "To ensure that the State can meet its obligations to schools, debt service, and others entitled to payment under the State Constitution, federal law, or court order. California may begin, as early as February 1, 2009, issuing registered warrants...commonly referred to as IOUs...to individuals and entities in lieu of regular payments."

Right... and DUmmies want that crap put in place all over the country.

sgrooms

01-01-2009, 02:06 PM

If...BIG if...Kalifornia has to declare bankruptcy, how long before some of the other states start to fail? If this is the case, why would we not let the auto industry do the same thing?

If it is good enough for Kalifornia, it should be good enough for the Mediocre Three.

submarinepainter

01-01-2009, 03:24 PM

Well doesn't it figure the same bunch that would track to the edge's of the earth want to send you an IOU?

wiegenlied

01-02-2009, 05:12 PM

Great. Government is bankrupt (or richer because of corruption?), and as they borrow more and more, soon they will tax more and more to cover it. This year I'll begin to pay my portion of tax from a full-time job. I wish the new government will not tax as much as it has promised, and if they do tax higher, I wish there will be a tangible benefit from that higher tax.

I don't like taxes wherever they are.

PoliCon

01-02-2009, 05:29 PM

Calif. Taxpayers May Get IOUs

By Patrick Healy
NBCBayArea.com
updated 33 minutes ago

If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU.

California is rapidly running out of money. Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves. Facing inadequate credit to make up the difference, California's Controller John Chiang warns that by the end of February, the nation's most populous state may not be able to pay some of its debts, and instead be reduced to issuing those creditors IOUs.

"My office has projected that, in approximately 60 days, there will be insufficient cash available to meet all expenditures reflected in the 2008-09 Budget Act," stated a Tuesday letter from Controller Chiang to the directors of all state agencies. "To ensure that the State can meet its obligations to schools, debt service, and others entitled to payment under the State Constitution, federal law, or court order. California may begin, as early as February 1, 2009, issuing registered warrants...commonly referred to as IOUs...to individuals and entities in lieu of regular payments."